Reviewing IEG (IEGH) & Regional Management (RM)

IEG (OTC:IEGH) and Regional Management (NYSE:RM) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for IEG and Regional Management, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IEG 0 0 1 0 3.00
Regional Management 0 3 1 0 2.25



IEG currently has a consensus target price of $0.80, suggesting a potential upside of 196.30%. Regional Management has a consensus target price of $33.25, suggesting a potential upside of 13.83%. Given IEG’s stronger consensus rating and higher possible upside, equities research analysts clearly believe IEG is more favorable than Regional Management.

Profitability

This table compares IEG and Regional Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IEG -372.04% -93.53% -90.99%
Regional Management 11.64% 12.87% 3.81%

Risk and Volatility

IEG has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Regional Management has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Dividends

IEG pays an annual dividend of $0.01 per share and has a dividend yield of 3.7%. Regional Management does not pay a dividend. IEG pays out -1.7% of its earnings in the form of a dividend.

Insider & Institutional Ownership

0.1% of IEG shares are held by institutional investors. Comparatively, 86.0% of Regional Management shares are held by institutional investors. 39.5% of IEG shares are held by insiders. Comparatively, 8.0% of Regional Management shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares IEG and Regional Management’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IEG $1.69 million 1.97 -$5.50 million ($0.60) -0.45
Regional Management $272.46 million 1.26 $29.96 million $2.26 12.92

Regional Management has higher revenue and earnings than IEG. IEG is trading at a lower price-to-earnings ratio than Regional Management, indicating that it is currently the more affordable of the two stocks.

Summary

Regional Management beats IEG on 9 of the 15 factors compared between the two stocks.

IEG Company Profile

IEG Holdings Corporation, a consumer finance company, provides online unsecured consumer loans to individuals. It offers loans for debt consolidation, medical expenses, home improvements, auto repairs, purchases, and discretionary spending. The company provides its unsecured consumer loans to residents under the Mr. Amazing Loans brand name through its mramazingloans.com Website in 19 states, including Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Maryland, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Utah, and Virginia. IEG Holdings Corporation was founded in 1999 and is headquartered in Las Vegas, Nevada.

Regional Management Company Profile

Regional Management Corp., a diversified consumer finance company, provides various loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. The company offers small and large installment loans; automobile purchase loans; loans to finance the purchase of furniture, appliances, and other retail products; insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products. Its loan products are secured and structured on a fixed rate and fixed term basis with fully amortizing equal monthly installment payments repayable at any time without penalty. The company's loans are sourced through branches, direct mail campaigns, retailers, and digital partners, as well as its consumer Website. As of February 13, 2018, it operated through a network of 342 branches located in South Carolina, Texas, North Carolina, Tennessee, Alabama, Oklahoma, New Mexico, Georgia, and Virginia. The company was founded in 1987 and is headquartered in Greer, South Carolina.

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